dynamic pricing

Canadian electric utility Power Stream has deployed a Customer Opt-in Dynamic Pricing (CODP) pilot to residential electricity consumers.Power Stream, a community-owned energy company that provides power and related services to residential and commercial customers north of Toronto and in Central Ontario, used Ottawa-based Energate's solutions.

The company specialises in interactive energy management solutions that enable next-generation energy management for the Utility Internet of Things (IoT) and the connected home.

The pair conducted a pilot of the Customer Opt-in Dynamic Pricing (CODP) programme, which prompted the launch of a second pilot to evaluate the impact of Customer Opt-in Dynamic Pricing during the next two seasons (winter and summer 2016).

The programme has been designed to provide significant savings to the grid and to Power Stream customers.

Approximately 500 new participants were enrolled for the winter and 300 more customers will be enrolled for the summer of 2016, says a company release.

Energate says that with a second summer, additional data on a larger number of customers will further validate the value of this innovative programme.

Mark Henderson, PowerStream’s EVP Asset Management and chief operating officer, said: “The Advantage Power Pricing programme exceeded our expectations.

“So much so that we are expanding the evaluation of the effect of dynamic price signals and set-and-forget technology on managing peak demand.”

Savings through Advantage Power Pricing (APP)

The first pilot project that took place in summer 2015 was supported by the Ontario Ministry of Energy’s Smart Grid Fund and implemented Advantage Power Pricing (APP), which is a voluntary, dynamic pricing program for residential customers.

Customers who took part in the pilot paid a very low price for off-peak energy use, while their peak use from 3:00 to 9:00 p.m. on weekdays varied between one of three rates, based on actual provincial electricity demand.

According to Energate, Customer Opt-in Dynamic Pricing can be implemented at any local distribution company.

As with TOU rates, dynamic pricing has the potential to benefit microgrids, conservation and demand management, demand response, energy storage, and further development of in-home tools for customers.

Steve Dodds, Energate’s chief executive officer, said: “Enhanced technology for the second pilot will provide participants with additional information to help them save.

“The benefits will be long lasting as over 80% of respondents in the first pilot reported they had developed lasting saving behaviours that would continue over time.”